Reference no: EM132904451

M, P and B, partners sharing profits and losses based on 4:4:2 decided to liquidate. All assets of the partnership were liquidated. The condensed statement of financial position just prior to the liquidation follows:

Cash 300,000                          Liabilities 420,000

Other assets 1,200,000               M, Loan 30,000

                                              M, Capital 135,000

                                            P, Capital 315,000

                                         B, Capital 600,000

1,500,000                                     1,500,000

Other assets were sold for P742,500 realizing a loss of P457,500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency.

Problem 1: How much is the cash received by partner P?

a. 505,500

b. 498, 500

c. 503, 500

d. 493, 000